HomeMy WebLinkAboutAppropriating $50,000.00 for Project Rehabilitation GrantsORDINANCE No . 6441 -78
Passed by the Common Council of the City of South Bend, Indiana
ust 28 19 78
IRENE K. GAMMON
Presented by me to the Mayor of the City of South Bend, Ind*ana
August 29 1978
Clerk
of Common Council
IRENE K. GAMMON
Approved and signed by me KUL A4�* 3 a 19-7t
Clerk
ORDINANCE NO. (, 4 C() -78
AN ORDINANCE APPROPRIATING $50,000.00 FROM THE COMMUNITY
DEVELOPMENT BLOCK GRANT FUND, FOR PROJECT REHABILITATION
GRANTS, TO BE ADMINISTERED BY THE CITY OF SOUTH BEND
THROUGH ITS DIVISION OF COMMUNITY DEVELOPMENT AND RENEW, INC.
STATEMENT OF PURPOSE AND INTENT:
The City of South Bend, in creative and affirmative partnership
with city residents, private enterprise, and the Federal Government, is
committed to the national housing goal of "a decent home and a suitable
living environment" for all persons. In attempting to achieve this goal,
the City of South Bend has developed programs to assist non - profit
groups to purchase in part, residential properties within the neighborhood
strategy areas. Community Development Block Grant funds therefore, will
be utilized by Renew, Inc. to purchase and rehabilitate housing units. Renew
in turn will resell them to participants in the Renew Program. This
program activity by Renew, Inc. will serve to assist low -and moderate -
income families to become homeowners of standard housing purchased at
affordable prices.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City
of South Bend, Indiana, as follows:
SECTION I. The sum of $50,000.00 is hereby appropriated for the
program year starting July 7, 1978 from the City of South Bend's Community
Development Block Grant Fund (Program Year 1978). The appropriation shall
be used within the boundaries of the Community Development Neighborhood
Strategy Areas as approved by the United States Department of Housing and
Urban Development under Title Twenty -Four (24), Code of Federal Regulations
Part Five Hundred and Seventy (570) for the Community Development Program
Year 1978. The appropriation shall be administered by the Division of
Community Development and Renew, Inc. and will be administered as set forth
below:
PROGRAM -CD -78 -105
COMMUNITY DEVELOPMENT PROGRAM
PURPOSE AMOUNT
Personnel Costs $24,380.00
Non - Personnel Costs 25,620.00
TOTAL: $50,000.00
SECTION II. This ordinance shall be in full force and effect from
and after its passage by the Common Council and approval by the Mayor
Ist READING 8- /$/- 7 8
PUBLIC HEARING
2nd READING
NOT APPROVED
RL'FERRED
PASSED
I - - fl" L_ izi 0 , /�, JA A r.�
Member o the Common Council
FILED IN CLERK'S OFFICE
AUG 9 1978
Irene Gammon
CITY CLERK, SOUTH BEND, IND.
f vattut u Irvart
Xv toe (common (90nurd of the (9tty of 0OW4 Wen—h:
Your Committee OF THE WHOLE
to whom was referred
A BILL APPROPRIATING $50,000.00 FROM THE COMMUNITY
DEVELOPMENT BLOCK GRANT FUND, FOR PROJECT REHABILITA-
TION GRANTS,: TO BE ADMINISTERED BY THE CITY OF SOUTH
BEND THROUGH ITS DIVISION OF COMMUNITY DEVELOPMENT
AND RENEW, INC.
Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED
TO THE COUNCIL FAVORABLE.
FRANK HORVATH
Chairman
FREE PRESS PUBLISHING CO.
CITY of SOUTH BEND
PETER J. NEMETH, Mayor
COMMUNITY DEVELOPMENT PROGRAM
Carl Ellison
Director
Jon R' Hunt
Deputy Director
V. LaMar Wilson
Assistant Director
TO:
FROM:
August 9, 1978
M E M O R A N D U M
MEMBERS OF THE COMMON COUNCIL
CARL ELLISON, DIRECTOR, COMMUNITY DEVELOPMENT
IN� 3:
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wb�oo�a •
1440 County -City Building
South Bend, Indiana 46601
219/284 -9335
SUBJECT: 1978 CDBG APPROPRIATION (Renew Rehabilitation Project)
The Division of Community Development is presenting for your consider-
ation an appropriation bill totaling $50,000.00 for a Renew, Inc.
Rehabilitation project.
During the past three CD program years,Renew Inc. has utilized CD
Non - Profit Group Rehab Grant money to assist them in rehabing approximate-
ly twenty -five homes for low- income families. The CD staff has been ex-
tremely pleased with Renew's caliber of rehabilitation work and its com-
pliance with CD contract terms and regulations. The CD staff therefore
believes that Renew has a proven track record to warrant expending addit-
ional monies to assist the agency's operational and personnel costs.
Renew is a non - profit corporation chartered to provide low -cost housing
to families with annual incomes ranging between $5,000 and $8,000 through
a program of rehabilitation of existing homes. Renew generally purchases
homes on land contract and in turn resells them to participants in the
Renew program. The money Renew receives is used to rehabilitate and
purchase other homes. In essence, Renew provides an excellent mechanism
to enable low- income families to become homeowners who otherwise would
quite probably be life time renters.
Renew also requires its participants to attend a series of homeowner-
ship classes lasting about six months. Renew, Inc. then looks with the
family for a home that will meet its specific needs. After purchase, the
home is rehabed and follow -up work and contact with the family continues.
Since Renew's clients repay money on extended terms, the agency is
in need of financial assistance to continue its activities.
To: Common Council
From: Carl Ellison
RE: Renew Rehab Project
Page 2 Cont.
Renew Inc. proposes to execute these activities with the following
budget:
PERSONNEL
Business Administrator
$12,000
Director of Social Services
9,000
Bookkeeper - Part Time
2,500
'780
F.I.C.A.
Workmen's Compensation
100
TOTAL PERSONNEL
$24,380
NON- PERSONNEL:
Travel
$ 1,660
Workshops
500
Office Rental
3,300
Telephone
1,400
Consumable Supplies
1,310
Legal & Audit
750
Printing $ Newsletter
200
Liability Insurance
500
Class Expenses
200
Equipment
800
* Home Purchase
15,000
TOTAL NON- PERSONNEL:
$25,620
GRAND TOTAL:
$50,000
* Please note that the $15,000 will be used by Renew to make down pay-
ments on available units in the CD Neighborhood Strategy Areas. An
estimated ten units will be acquired with this amount.
We respectfully request your favorable consideration of the attached bill.
Should you have questions or require additional information, please contact
me or Patricia Osmon of my staff.
CE /br
Attachment
CC: Jon Hunt
Patricia Osmon
Marcella Pynaert